Insurance World

Life insurance is one of the most important types of insurance you can get, although many people don’t get it early enough or have inadequate cover. If you don’t have life insurance yet or you are not sure if your policy is good enough, then there useful tips will help you to decide when and what type of life insurance to get:

Get insurance now

Right now life insurance is at an all time low, so whatever age you are the time to get insurance is now. In fact, the younger you are then the cheaper the insurance is likely to be, because you are less of a risk to the lender. By getting insurance now you will have the peace of mind that should the worst happen, you will be covered.

How much insurance?

Although life insurance is relatively cheap, most people don’t have an adequate level of cover. You might think that Ј100,000 of cover for a few pounds a month seems good, but Ј100,000 is not that much. Although a payout of Ј100,000 might seem like a lot of money, that money might have to support your family for the next 15 or 20 years. Many people simply do not have an adequate level of cover to support their families after their death.

Working out how much you need

If you are looking for life insurance, then the best way to work out how much cover you need is to work out the amount your family needs to support them each year, and then multiply this by 25 to allow for tax over 15 or 20 years. This is the amount of cover your family would need to support their current lifestyle for a significant period of time. Obviously, the amount you need also depends on how much you can afford. Generally, the more you can pay the better.

Term insurance

The most common form of life insurance is term life insurance. This form of life insurance is cheap, and you pay a set amount each month for the term of the agreement. You work out how much you want your family to receive in the event of your death. If you stop paying the monthly payments you lose all the money you have put in, and if you are still alive at the end of the term then there is no payout. This form of life insurance is cheap but does not guarantee payout.

Whole life insurance

The other most common form of life insurance is whole life insurance. Basically, you are insured for your entire life. The amount you pay is put into an investment fund, with your premiums usually remaining the same for the first few years before going up. This type of insurance is more expensive but has the advantage that payout is guaranteed.

Other factors

Before you get life insurance, make sure that you work out exactly what sort of cover you need, and look at any other factors that will affect the price. If you smoke or have poor health then some insurance policies will charge more. Whatever type of life insurance you get, it pays to get insurance as soon as you can and for as much as you can afford.

People collect silver, gold, platinum, and other precious metals for several reasons. For many, a jewelry collection of any kind has enormous sentimental value, having been passed down from generation to generation, with pieces symbolizing milestones in life. For some, precious metals serve as a status symbol – if you’ve got it, flaunt it! Others collect jewelry and coins as an investment, one that is much less volatile than stock investments.

No matter why you possess these metals, your passion (or investment) has recently reached a peak in value. This increase in value is a trend that is expected to continue over the next couple of years and across several precious metal markets.

“Countries such as China and India have emerging economies that are using precious metals for industrial and jewelry use; this increases the demand for such metals, which in turn increases the price,” said Roger Ponn, appraiser and owner of Roger Ponn Associated Appraisers LLC. “In the current market it is safe to say that the prices of gold and platinum aren’t coming down to any large extent for any long period of time, at least not anytime time soon.”

In the past few years, metal prices have been on a steady and consistent climb. Gold and platinum values have doubled in the past five years, while silver has tripled. In May 2006, gold reached an all-time high of $700/ounce, a figure that has been on a steady and consistent climb. To the average consumer, this means that a family heirloom jewelry collection could be worth substantially more now than it was appraised for just a year ago. But if something were to happen to that collection, would insurance cover the current value?

“Consumers who collect and appreciate fine things are generally aware that it is important to have their valuables appraised every few years,” says Chris Heidrick, vice president of personal insurance at Fireman’s Fund. “However, the jump in the value of metals has subsequently created a gap between what consumers have insured their jewelry collection for and what it is actually worth.”

Experts agree that it is important to have a collection appraised to determine its current value. But equally important is to have insurance that covers the current value, not just the last appraised value. “Jewelry and coin collection values have really skyrocketed in the last five years, leaving many consumers vulnerable to a potential catastrophic loss if their insurance is limited to an outdated appraisal value,” explains Ponn.

Of course, with any family heirloom or fine jewelry, there is the sentimental value to protect in addition to the market value. In addition to insuring a collection for its financial worth, it is equally important to work with an insurance agent or appraiser who will offer guidance on how to properly store and care for jewelry to protect it from theft or damage.

“We understand that the emotional attachment to a jewelry piece is just as important as the actual value. To reflect this, our Prestige CollectionSM policy includes preferred pricing with a highly regarded appraisal service, and expert advice on protecting a valued object or collection,” says Heidrick. “We also work with our customers to have damaged pieces restored to their original splendor, and work closely with law enforcement to have stolen pieces found and returned to the rightful owner when possible.”

What steps should consumers take to ensure that they understand the current value, and protect their jewelry collections accordingly? Following are a few basic tips for protecting your jewelry collection:

1. Account for, and take pictures of each piece of jewelry. In the event of loss or theft, this will expedite the claims process.

2. Keep a copy of the appraisal, along with photos, away from the actual jewelry or coin collection. That way, if the collection is lost or stolen, your paperwork is not.

3. Keep your collection in a safe, dry place, away from the elements and out of view of common visitors to your home. A fire-proof safe is ideal.

4. Have your jewelry collection appraised regularly – especially after a reported increase in metal or gem value. In the current market, jewelry and coin collections should be re-appraised every two years.

5. Ask your insurance agent to recommend a reliable, trustworthy appraiser.

6. Talk to your insurance agent about what policies will best protect your collection.

Following these tips will not only ensure that your collection is adequately covered by your insurance plan to its current value, but will also allow you to quickly expedite a claim in the unfortunate case of loss or theft. Properly caring for your collection, both physically and as a financial asset, will allow you to enjoy it for years to come. - ARA